One of our directors, Moiz Choolawala was invited to give a talk on “Investment & Stock Market” at Walchand College of Engineering in Sangli on 4th Feb, 2012. Given below are some of the questions that students asked him during the Q&A session.
Q) STUDENT: What are the investment options available to start with for an amount of as low as Rs.1000 per month ?
A) MOIZ: i) Recurring Fixed Deposit
ii) Mutual Funds
iii) Post Office Savings Scheme
Q) STUDENT: I have always wanted to trade in shares & I have heard about demat acct? What should I do to open a demat account?
A) MOIZ: For trading in shares you need to open a
i) Demat and a trading account OR
ii) All in one acct (Demat + Trading + Banks)
The 2nd type of acct is usually provided by banks like ICICI & HDFC e.g. www.icicidirect.com
For the 1st type you can approach a share broker like
i) India Infoline
iii) Motilal Oswal, etc
For opening such an acct the documents required are
a) Photograph (Own & Nominee)
b) Pan Card Copy
c) Address Proof
d) A/C Opening cheque
e) Filled up demat & trading form
Usually it takes around 15 to 20 days for the entire procedure
Q) STUDENT: What is a demat account ?
A) MOIZ: Demat stands for dematerialization of shares. i.e. Conversion of physical shares into electronic form.
The account in which these demat shares are stored is known as demat a/c.
Demat acct are provided by NSDL & CDSL in India.
Q) STUDENT: What is Inflation & Why should I be even bothered about that ? They say it affects ,but if there is more income than only there is more inflation so how does it matter ?
A) MOIZ: Inflation is good for an economy if it is under control, the problem arises when there is lot of liquidity (Cash) available, which leads to Disruption/Imbalance of Supply and Demand of cash in the economy.
Q) STUDENT: What is better – directly investing in shares or investing in Mutual Funds ?
A) MOIZ: For a person who does not have knowledge about the stock markets and experience in the finance sector it is always advisable to invest in Mutual funds ( which is indirect way of investing in stock markets via a professional guidance).